|
Archive@NYU >
Stern School of Business >
Finance Working Papers >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/2451/27277
|
| Title: | Have U.S. Financial Institutions' Real Estate Investments Exhibited
"Trend-Chasing" Behavior? |
| Authors: | Mei, Jianping
Saunders, Anthony |
| Issue Date: | Jan-1995 |
| Series/Report no.: | FIN-94-046 |
| Abstract: | This paper uses real estate investment data for major groups of U.S.
financial institutions--- commercial banks, thrifts and life insurance
companies to evaluate their investment timing performance over the
1970-1989 period. Our finding is that real estate investments by these
institutions have largely been driven by ex post or past real estate
returns rather than future expected returns. This apparent
“trend-chasing” investment strategy---of buying high and
selling low---offers an explanation for the poor performance in their
real estate investments. We argue that imposing market value accounting
on such institutions may actually reinforce their
“trend-chasing” behavior. |
| URI: | http://hdl.handle.net/2451/27277 |
| Appears in Collections: | Finance Working Papers
|
All items in Faculty Digital Archive are protected by copyright, with all rights reserved.
|
